Date: Thursday, July 16, 2020
10:00am-11:00am PT / 1:00pm-2:00pm ET
Format: A BVR Webinar

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Featuring  (click image for bio)

Bruce A. Johnson
Munroe, Park & Johnson, Inc.

About This Program

Privately held promissory notes (typically $0 to $10 million) need to be valued for gift/estate, tax, and related party transactions. However, bonds from publicly traded companies are not comparable because publicly traded companies are large, diversified, and represent much less risk. Note buyers typically discount the outstanding balance of privately held notes to yield a return of 12% to 20% depending on the collateral and other risk factors. Since corporate bonds yield around 4% to 6%, the difference in yields is significant and using corporate bonds might overvalue a privately held note. Business development corporations (BDC) are publicly traded entities that make loans to small and medium-size, privately held businesses. Their rates can be used as a base rate for the buildup method of determining a market rate of return. Expert Bruce Johnson discusses the issues with privately held notes and how to value them using BDC rates and presents real-world examples to illustrate the methodology.


  • How are Privately Held Promissory Notes Used?
  • Where can I find comparable rates of return for Valuing Privately Promissory Notes?
  • What is the best methodology for Valuing Privately Promissory Notes?
  • How do you know your appraised value is correct and supportable?

Learning Objectives

  • Describe how to Value Privately Held Promissory Notes using a trusted methodology
  • List the pitfalls to Avoid when valuing Privately Held Promissory Notes
  • Explain how to quickly check an appraisal of a Privately Held Promissory Notes to determine if it is supportable
  • Describe where to obtain the best rate of return data for calculating a market interest rate

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Admission to this event authorizes one computer and phone connection for one location. These connections may be transferred users and/or locations. Multiple concurrent connections for a single admission registration are not allowed.

Multi-User CPE Policy

Admission to this program includes one CPE certificate for one individual. Any additional listeners requesting CPE must pay a processing fee assessed at the completion of the online CE survey for this course.

CPE Processing Fees may be bypassed by entering a valid, unused CPE Authorization Code (for single event purchasers) or by logging into BVR's website (for subscribers to BVR's Training Series).

CPE Information

Prerequisites: Knowledge of Business Valuation
Program Level: Advanced
Preparation Required: None
Delivery Method: Group Internet-Based
Recommended CPE: 1 Credit Hours (Accounting Technical)

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